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Please note!
This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.
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FACT BRIEF

Are health care costs a big factor in personal bankruptcy filings in the US?

By Gus Fisher
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YES

Research over the past 15 years points to medical expenses as a big contributor to personal bankruptcy in the U.S., but not to a consensus that health care costs are the number one cause.

An American Journal of Public Health survey of bankruptcy filers between 2016 and 2019 found that two-thirds of filers identified medical expenses as a factor—which suggests there have been limits to hoped-for benefits from the 2010 Affordable Care Act’s changes to insurance access and costs. A 2007 study by the American Journal of Medicine found that 62.1% of bankruptcies were medical.

Results from other studies vary. Health Affairs found that 17% of bankruptcies were caused by medical bills. A 2014 study published in Maine Law Review found that the number ranged from 18% to 26%. The New England Journal of Medicine found that 4% of bankruptcies were caused specifically by hospital costs.

This fact brief is responsive to conversations such as this one.
Sources
American Journal of Public Health Medical Bankruptcy: Still common despite the Affordable Care Act (2019)
American Journal of Medicine Medical bankruptcy in the US: Results of a national study (2007)
Health Affairs Medical bankruptcy: Myth versus fact (2006)
Maine Law Review Medical Debt as a cause of consumer bankruptcy (2014)
New England Journal of Medicine Myth and Measurement: The case of medical bankruptcies (2018)
ABOUT THE CONTRIBUTOR
Gigafact
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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About fact briefs published on Gigafact
Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.